STOCK COMPENSATION EXPENSE (Tables)

6 Months Ended

Jun. 30, 2015

The assumptions used in the Black-Scholes option-pricing model are as follows:

	2015			2014
Risk-free interest rate		1.41	%		2.78	%
Expected option life (yrs)		10.00			10.00
Expected stock price volatility		17.20	%		31.19	%
Dividend yield		3.53	%		3.33	%
Weighted average fair value of options granted	$	1.37		$	3.74

A summary of the Company's stock option activity and related information is presented below for the six months ended June 30:

	- - - - - - 2015 - - - - - -					- - - - - - 2014 - - - - - -
	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Outstanding at beginning of year		273,942		$	11.06		354,281		$	9.84
Grants		47,650			14.72		46,300			14.43
Exercises		(18,450	)		10.87		(63,297	)		8.45
Forfeitures or expired		(16,733	)		17.10		(8,133	)		9.27
Outstanding at June 30,		286,409		$	11.51		329,151		$	10.77

Exercisable at June 30,		204,675					223,898
Weighted average remaining life of options outstanding		6.2					6.2
Weighted average fair value of options granted during the year	$	1.37				$	3.74

Additional information regarding stock options outstanding and exercisable at June 30, 2015, is provided in the following table:

	- - - - - - - - Outstanding - - - - - - - -						- - - - - - - - Currently Exercisable - - - - - - - -
Range of Exercise Prices	Number		Weighted Average Exercise Price		Aggregate Intrinsic Value		Number		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Aggregate Intrinsic Value

$6.50 to $10.00		106,949	$	7.56	$	844		106,949		5.9	$	7.56	$	844
$10.01 to $12.50		36,000		11.39		146		23,374		7.7		11.39		95
$12.51 to $15.00		122,960		14.23		150		53,852		3.8		13.75		92
$15.01 to $17.50		20,500		16.00		-		20,500		0.6		16.00		-
Outstanding - June 30, 2015		286,409		11.51	$	1,140		204,675		5.0		10.47	$	1,031